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City of Santa Ana <br />Master Agreement No. 64AO274 <br />Page 12 of 26 <br />(2) No such termination shall become effective if, within thirty (30) days after receipt of a <br />Notice of Termination, RECIPIENT either cures the default involved or, if not <br />reasonably susceptible of cure within said thirty (30)-day period, RECIPIENT <br />proceeds thereafter to complete the cure in a manner and time line acceptable to <br />STATE. Any such termination shall be accomplished by delivery to RECIPIENT of a <br />Notice of Termination, which notice shall become effective not less than thirty (30) <br />days after receipt, specifying the reason for the termination, the extent to which funding <br />of work under this AGREEMENT is terminated and the (late upon which such <br />termination becomes effective, if beyond thirty (30) days after receipt. During the <br />period before the effective termination date, RECIPIENT and STATE shall meet to <br />attempt to resolve any dispute. <br />(3) Following a fund encumbrance made pursuant to a PROGRAM SUPPLEMENT, if <br />RECIPIENT fails to expend TCR/GENERAL FUND monies by June 30 of any <br />applicable Fiscal Year that those funds would revert, those funds will be deemed <br />withdrawn and will no longer be available to reimburse PROJECT work unless those <br />funds are specifically made available beyond the end of that Fiscal Year through re - <br />appropriation or other equivalent action of the Legislature and written notice of that <br />action is provided to RECIPIENT by STATE. <br />(4) In the event STATE terminates a PROGRAM SUPPLEMENT for convenience and not <br />for a default on the part of RECIPIENT as is contemplated in C (1) and (2) above of <br />this Section 3, RECIPIENT shall be reimbursed its authorized costs up to STATE's <br />proportionate and maximum share of allowable PROJECT costs incurred to the date of <br />RECIPIENT's receipt of that notice of termination, including any unavoidable costs <br />reasonably and necessarily incurred up to and following that termination date by <br />RECIPIENT to effect such termination following receipt of that termination notice. <br />D. Third Party Contracting <br />(1) RECIPIENT shall not award a construction contract over $10,000 or other contracts <br />over $25,000 [excluding professional service contracts of the type which are required to <br />be procured in accordance with Government Code Sections 4525 (d), (c) and (f)] on the <br />basis of a noncompetitive negotiation for work to be performed under this <br />AGREEMENT without the prior written approval of STATE. Contracts awarded by <br />RECIPIENT, if intended as local match credit, must meet the requirements set forth in <br />this AGREEMENT regarding local match funds. <br />(2) Any subcontract entered into by RECIPIENT as a result of this AGREEMENT shall <br />contain the provisions of ARTICLE H — GENERAL PROVISIONS, Section 2. Audits <br />and Reports and shall mandate that travel and per diem reimbursements and third -party <br />contract reimbursements to subcontractors will be allowable as PROJECT costs only <br />after those costs are incurred and paid for by the subcontractors. <br />Revised December 23,2020 <br />